Reference no: EM133274235

1)Andover Bank and Lowell Bank each sell one-year certificates of deposit (CD's). The interest rates on these CD's are given in the following table for a three-year period

Bank	2018	2019	2020
Andover Bank	5%	5%	5%
Lowell Bank	2%	6%	7%

Suppose you deposit $1,000 in a CD in each bank at the beginning of 2018. At the end of 2018, you take your $1,000 and any interest earned and invest it in a CD for the following year. You do this again at the end of 2019. At the end of 2020, which of the following statements is true?

A)You will have earned $0.75 more by keeping your money in Andover Bank

B)You will have earned $0.75 more by keeping your money in Lowell Bank

C)You will earn the same whether you put your savings into Andover Bank or Lowell Bank

D)No answer text provided.

Use the data for the United States in this table to answer the following (2) questions.

Year	Real GDP per Capita in Constant 2009 US dollars
2012	$48,841
2013	49,317
2014	50,119
2015	51,054
2016	51,523

What was the percentage change in RGDP per capita between 2012 and 2016?

A)5.49%

B)2.75%

C)1.37%

D)0.7%

Use the data for the United States in this table to answer the following questions.

Year	Real GDP per Capita in Constant 2009 US dollars
2012	$48,841
2013	49,317
2014	50,119
2015	51,054
2016	51,523

What was the average ANNUAL growth rate in RGDP per capita between 2012 and 2016? (hint: remember that the average annual growth rate for relatively short periods can be approximated by averaging the growth rates for each year during the period).  

A)1.345%

B)2%

C)2.69%

D)3%

The following policy NOT likely to increase the rate of economic growth in the United states: Congress passes an investment tax credit , which reduces a firm's taxes if it installs new machinery and equipment.

A)false

B)true

The following policy NOT likely to increase the rate of economic growth in the United states: Congress provides more funds for low interest loans for college students.

A)false

B)true

The following policy NOT likely to increase the rate of economic growth in the United states: Congress passes a law that allows taxpayers to reduce their federal income taxes by the amount of state sales taxes they pay.

A)false

B)true